Deskilling technology affords work amenity, increases labor supply

Deskripsi

We investigate how deskilling technology (map apps) affects the choice of individuals to provide ride-hail service. In a vignette experiment, technology increased participation in work by 8% and 4% among low- and high-skill drivers respectively. Technology can increase participation by raising productivity or affording an amenity (reducing disutility of work). A field experiment revealed that the technology afforded more amenity to low-skill drivers and they incurred more stress when driving without technology. Strategically, the amenity is important as it may reduce wage pressures.